Is the interest rate paid on an car loan deductible for self-employed?

I am maybe taking on an car loan with high interest 17.9% I really like/love this vehicle, and although the monthly payments are high, if the interest /finance charge I pay yearly on it is tax deductible, I will do it. (Last year I had self-employed health insurance at $330.00 per month--total tax write off). Is optional coverage for Credit Life...or Accident %26amp; Health on this vehicle covered as deductible as well?

Is the interest rate paid on an car loan deductible for self-employed?

First of all you would have to prove that you use the vehicle only for business. And that means going from your office to see a client or do some specific business trip. It does not mean going from your home to the office. If you use it ONLY for business then there is a schedule of depreciation that you must use for deducting the expense of a vehicle or any business equipment. It is really a red flag to the IRS when you try to deduct vehicle expenses. And you can%26#039;t just deduct the interest expense. If you use it for business AND other driving, then you get to deduct a certain amount per mile for business driving. The schedule is set by the IRS. I was in an audit for 3 years over business car expenses.

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Is the interest rate paid on an car loan deductible for self-employed?

Only if you claim it as a business expense. Get yourself a copy of TurboTax for small business (not the basic version) and it will greatly simplify your life. Cost of the software is completely deductible.

Is the interest rate paid on an car loan deductible for self-employed?

Example [publication 334].

In 2007, you paid $600 interest on a car loan. During 2007, you used the car 60% for business and 40% for personal purposes. You are claiming actual expenses on the car. You can only deduct $360 (60% 鑴?$600) for 2007 on Schedule C or C-EZ. The remaining interest of $240 is a nondeductible personal expense.

Is the interest rate paid on an car loan deductible for self-employed?

No, it%26#039;s not, unless you have a corporation, and the corp buys and finances the car. If it%26#039;s in your name, it%26#039;s not like health insurance, you can%26#039;t write off interest.

Don%26#039;t take that car. If you can%26#039;t afford it, you can%26#039;t afford it. If the monthly payments are high, the insurance is going to be even higher.

That high interest rate should be a major red flag to you, that you CAN%26#039;T AFFORD THE CAR.

Optional coverages on the policy are not %26quot;write off able%26quot;, unless it%26#039;s a commercial auto policy in the name of the corporation. In which the entire policy can be written off your income. Of course, the commercial policy costs a lot more than a personal policy, for one car.